Ericsson and Kpasch CarrierCom have won the bidding to acquire Nortel's GSM and GSM-R business. Ericsson is acquiring certain assets of Nortel's GSM business in North America for USD 70 million on a cash and debt free basis, while Kapsch is paying USD 33 million to acquire most of the remaining assets in Europe and Taiwan and the GSM-R business. As a result of the takeover, Ericsson will win North American operators such as AT&T and T-Mobile as customers; the company expects the deal to have a positive effect on earnings within a year of closing. Ericsson will offer employment to approximately 350 employees from Nortel, and another 330 Nortel employees will move to Kapsch. Pending regulatory and court approval, Nortel expects to close the transaction in the first quarter of next year.
- News source: telecompaper
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